More and more families are relocating, buying vacation homes, or acquiring property in a second (or third) state. While finding the perfect property is often top of mind, revising or considering your estate plan is less thought of. That’s where we come in. Say you own a primary residence in New York, and a vacation home on the sunny beaches of Florida. Without a proper will or trust, your estate would span two states, meaning your heirs would need to petition for probate in New York and petition for ancillary probate in Florida to sell both of your properties. If it sounds like a lot of work, it can be. Additionally, probate is governed by state law, meaning two states’ laws would be in play. This can have unintended tax and legal consequences for your beneficiaries.

Generally, the way to avoid this situation is by establishing a trust. Through this mechanism, you can place both properties in the trust, maintain control and life use of the properties, but avoid probate altogether on your passing. This means your beneficiaries would be able to immediately use or sell the properties without waiting to complete a court process, and without having to engage out of state counsel. In addition, you remain free to change your mind and sell your properties during your lifetime, or even to switch what property is included in the trust.

If this sounds like your situation, and you do not already have an estate plan in place to deal with this unique circumstance, please contact us.